Sri Lanka and China have reached an agreement to expedite the conclusion of a comprehensive Free Trade Agreement (FTA) in “one package,” emphasizing the principles of equality, mutual benefit, and win-win outcomes. This announcement was made in a joint statement released during Sri Lankan President Anura Kumara Dissanayake’s state visit to China, a visit that marked a significant milestone in the strengthening of bilateral relations between the two nations. Both countries expressed satisfaction with the progress made in economic and trade cooperation, highlighting the potential for further growth and collaboration.
Sri Lanka expressed its gratitude to China for its consistent efforts to promote Sri Lankan exports through various initiatives. These efforts include supporting key Sri Lankan industries such as tea, gemstones, and other prominent sectors by establishing connections with Chinese associations of importers and exporters. In addition, China has offered to assist Sri Lanka in participating in several high-profile trade expos, including the China International Import Expo, the China Import and Export Fair, and the China-South Asia Exposition, as well as through e-commerce platforms. These initiatives are designed to expand market access for Sri Lankan goods and foster stronger commercial ties between enterprises in both countries.
The statement also emphasized Sri Lanka’s willingness to welcome increased Chinese investment, with assurances to create a favorable business environment for foreign investors. This includes reforms aimed at facilitating business operations and ensuring long-term investment security. China has reiterated its readiness to encourage Chinese enterprises to invest in Sri Lanka, particularly in sectors that support the island nation’s economic transformation and sustainable development goals. The focus will be on infrastructure development, manufacturing, and other areas that drive economic progress.
Both nations also expressed a shared interest in expanding collaboration beyond traditional trade. Areas such as logistics, green development, and the digital economy were identified as key sectors for future cooperation. This reflects the growing importance of environmentally sustainable practices and the integration of digital technologies into economic frameworks. By prioritizing these sectors, Sri Lanka and China aim to enhance the quality of their partnership and achieve practical, mutually beneficial outcomes.
The joint statement underscores the strategic importance of the Sri Lanka-China relationship in fostering economic growth and regional stability. The comprehensive FTA, once finalized, is expected to open new avenues for trade and investment while strengthening the long-standing ties between the two countries. This agreement comes at a time when Sri Lanka is seeking to stabilize its economy and attract foreign investment, and China’s continued support is seen as a critical factor in achieving these objectives.
The full Sri Lanka–China joint statement is below;
